Analyst Note
| Ioannis Pontikis, CFA |Nestle reported second-quarter sales that included strong organic growth of 8.5% (real internal growth of 7.2% versus 6% for consensus, pricing of 1.4% versus 1.2% for consensus) ahead of company-compiled consensus estimates of 7%. Growth continued to be supported by the retail channel (at an elevated level--up 7.3% in the first half versus 6.8% and 8.6% in the fourth and third quarter of last year, respectively) due to robust demand for at-home consumption, with the out-of-home channels recovering impressively as expected (up 21.3% in the first half, up 84.1% in the second quarter versus down 34.6% in first-half 2020).